What is a balance transfer on a credit card?
A balance transfer moves debt from one card (or loan) onto a different credit card, usually to take advantage of a lower or 0% intro APR. A one-time transfer fee — typically 3-5% of the amount moved — applies in most cases.
Mechanically, you request the transfer either during a new-card application or afterward through your online account, providing the old account's number and the amount to move; the new issuer pays off the old balance directly (allow 5-14 days, and keep paying the old card until it's confirmed at $0). The debt itself doesn't change — only which issuer holds it and, usually, the rate you're paying on it. Most transfers carry a fee (commonly 3-5% of the transferred amount, disclosed in the new card's Schumer Box) that's added to your new balance up front, so it needs to be smaller than the interest you'll save to make the move worthwhile. Balance transfers work between different issuers — you generally cannot transfer a balance to another card from the same bank — and most cards exclude transfers from other cards issued by that same bank.
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